A man runs near an unexpected bloom of wildflowers on a Huntington Beach truck farm. The field, tucked next to a housing tract and slated to become one itself, flooded during this winter's near-record rains. The field itself will probably disappear before too long. Developer Shea Homes is awaiting a California Coastal Commission hearing on its plan to put 111 single-family homes on the land. EUGENE GARCIA, THE ORANGE COUNTY REGISTER

HUNTINGTON BEACH The project slated to be built near the Bolsa Chica wetlands will get more study after California Coastal Commission members said they wanted action taken on illegal activity on the site over the years.

The commission unanimously voted Wednesday to continue the discussion on whether to grant a permit to Shea Homes for the proposed 111-home Parkside Estates project in the 17000 block of Graham Street.

Commissioners said farming activity, grading and other unpermitted work over the years has never been addressed, and they can't move forward with the project until it is decided whether any further preservation is needed.

"I just cannot comfortably go forward with this festering, unresolved question; what was unpermitted and what we're going to do about it," Commissioner Jana Zimmer said.

The 50-acre project site contains six acres of wetlands and farm land. Shea Homes has proposed to build homes on the farm land and create and preserve seven acres of wetlands.

Parts of the project site have been farmed since the 1950s. When Shea took over the property in 1996, farming activities continued.

"It was not a wetland when Shea took over," said John Vander Velde, vice president of operations for Shea Homes.

Representatives from Shea Homes said they agreed with continuing the meeting for further study.

"We are disappointed that we did not receive a Coastal Development Permit for Parkside Estates today, but we welcome the opportunity to review with current commissioners some sound decisions made by their predecessors," said company spokesman Laer Pearce.

Commissioner Mark Stone said when commissioners initially approved the project in 2007, they did not address any enforcement for development without permits and did not set any standards to make up for the loss of any potential wetlands.

"All of that has been swept under the rug ... it's really unfortunate," he said. "I think there are enough questions, had it not been developed illegally, (about) what is wetlands and what isn't wetlands?"

The project has been heavily contested for a decade by residents and environmental groups who say the development could be detrimental to the sensitive wetlands.

Wednesday's meeting pulled dozens of opponents to the project who cited several concerns, including the loss of habitat and the effect on wildlife.

They also alleged the project violated Huntington Beach's coastal development plan and said Shea Homes' plan to provide vegetative flood protection contradicts some development requirements.

"This project was controversial then and it's controversial now," said Councilwoman and Bolsa Chica Land Trust member Connie Boardman.

However, supporters of the project said Parkside Estates would mean preserved open space, better water quality and flood protection for surrounding residents. They also said the project adheres to the city's coastal plan.

"I've watched Shea Homes over the last 10 years go through so many things to make the Coastal Commission and the city happy," said resident Christine Rodell. "From my perspective, I think this is a gift and I think it's unfair to say you can't build here when it's been zoned residential."

The commission in October denied the project in a 6-5 vote, but Shea Homes filed a lawsuit in Orange County Superior Court asking the court to step in and demand the commission hold another hearing. Shea Homes also asked the commission to pay Shea Homes $55 million because they allege the commission's action was essentially a taking of their land, court records show.

Shea Homes contended in the lawsuit that they followed the rules and requirements of the commission but their project was still denied, despite commission staff's recommendation to approve Parkside Estates, court records show.

The lawsuit says the commission's decision was not based on facts or findings and it denied Shea Homes "all reasonable economic use of the property".

A judge signed an order on March 2 saying the commission would put aside its October decision and hold another hearing in June, court records show.

The project on the table has been scaled back from its original plans submitted in 2002.

Parkside Estates was originally proposed to have 170 homes with about four acres of preserved space, but the developer back the plans.

Huntington Beach City Council members approved the 111-home project in January 2009. That project would take up about 50 acres and preserve about 23 acres of open space.

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